Second Circuit Addresses Victims’ Rights, Restitution, and Asset Forfeiture in Insurance Context

May 2, 2018

In a case arising out of the CityTime scandal, the Second Circuit issued a thoughtful opinion addressing the operation of restitution and asset forfeiture on victims of white collar crime. The decision, Federal Insurance Co. v. United States, Nos. 16-2967-op and 16-3402-cr, emphasizes that though restitution and forfeiture are both means for victims to be made whole, they are not subject to the same analysis. Ultimately, the Court (Parker, Lynch, Carney) affirmed the decision denying restitution, but remanded for additional proceedings on forfeiture. The decision is worth a careful read for those representing victims in white collar criminal matters, and also serves as a road map for how district court judges might approach these issues in the future.

To continue reading Harry Sandick and Stephanie Teplin's article from Bloomberg BNA's White Collar Crime Report, please click here.